When it comes to planning for your taxes, it can be easy to feel overwhelmed. Most people try not to think about their taxes until it is time for the next tax filing season. However, changes to your filing status over the course of the tax year could significantly impact the way you file your taxes, and ultimately affect your refund. Your taxpayer status can be used to determine your filing requirements, your standard deduction amount, your tax credit eligibility, and the correct amount of taxes you should be paying. Keeping your filing status up to date is crucial to ensure you file your taxes correctly.
There are events that can occur over the course of the year that warrant a filing status update, such as marriage, divorce, the birth or adoption of a new child, and death. The IRS’ Interactive Tax Assistant can provide guidance on what impact the filing status change may have on your year’s taxes.
Tax resolution experts like Optima Tax Relief suggest checking with a tax professional if you anticipate a life event that will impact your tax filing status for the next year. Taking steps throughout the year, and not waiting until tax season, can really make a significant difference come April.